Bought back in case it rose alot $VST 20250328 175.0 CALL$ @Daily_Discussion @CaptainTiger @TigerStars @CaptainTiger @CaptainTiger 

Why It’s Smart to Close Sell Call Options Before PCE or When They Reach $0.01

1. Avoiding Risk from Market Volatility (PCE Event) ⚠️

The Personal Consumption Expenditures (PCE) index is a key inflation report that can cause major market swings. If the data surprises investors, stocks can move sharply—either up or down. If you have an open sold call option, unexpected market rallies could drive up the option’s value, turning your profitable trade into a loss.

For example, if you sold a $30 call on a stock, and PCE data sparks a rally, the stock could surge past $30, making your call option deep in the money and potentially leading to an unwanted assignment or a costly buyback. Closing before the event removes this risk.

2. Locking in Profits Instead of Holding for Pennies 💰

Once a sell call option drops to $0.01, there’s almost no extra premium left to gain—but the risk of a sudden reversal remains.

• If you buy to close at $0.01, you secure your profit and free up margin for the next trade.

• Keeping the option open just to collect the last cent can be dangerous, especially if the stock suddenly spikes.

For example, if a $50 sell call goes from $0.05 to $0.01, it might seem smart to hold, but if the stock unexpectedly jumps, the option could rebound to $0.50 or $1.00, wiping out previous gains. It’s better to pay the penny and eliminate risk.

3. Freeing Up Buying Power for More Trades 🔄

When you have a sold call, your broker reserves margin to cover the potential risk. Closing early:

✅ Frees up margin/collateral

✅ Allows you to enter new trades

✅ Lowers exposure to market fluctuations

By managing sell calls efficiently, you keep capital flexible and avoid surprises from major economic events like PCE.@TigerEvents $VST 20250328 175.0 CALL$